State tax rebate due for Arizona families

Arizona Republic

Almost three-quarters of a million Arizona families will soon see more money in their pockets thanks to a tax rebate plan that Republican lawmakers inked into the current state budget.

The Arizona Families Tax Rebate was a demand of the ultraconservative group of lawmakers known as the Arizona Freedom Caucus during the annual budget negotiation process earlier this year at the state Capitol. They got what they wanted, and that means you might soon get a little financial help.

An estimated 743,000 Arizona taxpayers are expected to benefit, according to the Arizona Department of Revenue. Here’s who gets the rebate, how much it will be, and when you can look for it in your bank account or mailbox.

Who qualifies?

The rebate is available to year-round residents who claimed Arizona’s existing tax credit for dependents in 2021 on their tax returns (which were due in 2022), and owed at least $1 in taxes during 2019, 2020, or 2021.

How much is the rebate?

Qualifying taxpayers will get the rebate for up to three dependents. For dependents under 17, the rebate is $250 per child. For dependents who are 17 and older, the rebate is $100.

When will rebates be processed and sent?

The Department of Revenue has a deadline of Nov. 15 to get the rebates out to Arizonans and will begin issuing them after Oct. 30, when the law that created the rebate goes into effect, according to spokesperson Rebecca Wilder.

Do you need to do anything to receive the rebate?

No. The state is working to identify Arizonans who qualify and will distribute rebates automatically based on the most recent tax information.

How will families get the rebate money?

The Department of Revenue says the rebates will be delivered via direct deposit or paper check in the mail. That will come with a written explanation that makes clear the money is the state rebate.

Why is Arizona sending a rebate?

The state budget was an extra thorny issue this year as the Republican-majority Legislature grappled for consensus with the Democratic governor and individual lawmakers.

To buy support, lawmakers were given a share of the state’s $2 billion-plus surplus to spend on their priorities. A lot of that went to pet projects.

But members of the Freedom Caucus also pooled what amounts to $260 million to create the rebate, which they said would provide relief to Arizonans struggling amid high inflation.

They also tucked in a provision that ensures Gov. Katie Hobbs doesn’t get any of the credit for sending cash back to Arizonans. She had her own tax credit proposal for low-income families that didn’t make the cut.

Reach reporter Stacey Barchenger at stacey.barchenger@arizonarepublic.com or 480-416-5669.